Economies of scope O A have to do with the cost-saving efficiencies of operating

Question

Economies of scope O A have to do with the cost-saving efficiencies of operating across a bigger portion of an industry's total value chain O B stem from the cost-saving efficiencies of scattering a company's manufacturing/assembly plants over a wider geographic O C refer to the cost-savings that flow from being able to combine the value chains of different businesses into a single value area chain O D are like economies of scale and arise from being able to lower costs via a larger volume operation. OE stem from cost-saving strategic fits along the value chains of related multiple businesses

Explanation / Answer

Option E is correct

stem from cost-saving strategic fits along the value chains of related multiple businesses

Economies of scope is adopted when the cost of producing the two more tham two products are cheaper than producing them separately.

So it is a cost saving strategy and the multiple variety of products can be produced to lower the cost in a production unit

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